Q2 2026 Al Jazeira Services Co SAOG Earnings Call

September 3, 2026

[Company Representative] (Al Jazeira Services): Session on the financial statement for six months ended 30 June 2026. We have posted the financials on 5 August on our securities site. For the ease of reference, we are going to share the income statement. We have shared the income statement for the discussion on financial performance of the company. You can see the revenue for the period grew by 21% to $6.7 million in H1 2026 compared to $5.5 million in H1 2025. However, the company reported operating loss of $97,000 against operating profit of $335,000 for H1 2025. This was mainly due to competitive pressure and effects of geopolitical situation in the region. Coming down, profit from the investments were $418,000 against $121,000 in H1 2025.

Speaker #1: Session on the financial statement for the 6-month period ending 30 June 2026. We posted the financials on 5 August on an assessment site. For ease of reference, we are going to share the income statement.

Speaker #1: So we have shared the income statement for the discussion on financial performance of the company. As you can see, the revenue for the period November 21% to 6.7 million in the first half of 2026, compared to 5.5 million in the first half of 2025.

Speaker #1: However, the company reported operating loss of 97,000 against operating profit of 335,000 for 1st half in 2025. This was mainly due to competitive pressure and effects of geopolitical situation in Bali.

Speaker #1: Coming down, profit from the investments were 418,000 against 121,000 in 1st half of 2025. With regard to the company investment in associate allowance, ceramic tiles company SOHG, as disclosed earlier, the company has sold 8.3% share and relied on a profit of 1,010,000.

[Company Representative] (Al Jazeira Services): With regard to the company investment in associate Al Anwar Ceramic Tiles Company, AACT, as disclosed earlier, the company has sold 8.3% stake and realized a profit of OMR 1,010,000. The share of profit from the associate was OMR 190,000 for this period. Today, for the associate company, shareholders approved in AGM on 21 May, the sale of remaining 28.3% stake. As of now, there is no further reportable development in this matter. The net profit for the period is OMR 1,454,000 against OMR 1,062,000 for the six months in 2025. The shareholders' equity at 30 June 2026 was OMR 14.1 million against OMR 14.8 million for 2025. The asset per share was OMR 193. Now, the floor is open for discussion. Please go ahead with your questions. Chat. Chat box. Just a second. Chat. There is one question that there is first operation loss in half year since 2009. Can you explain what happened?

Speaker #1: The share of profit from the associate was 190,000 for this period. Again, for the associate company, shareholders approved in the GM on 21 May the sale of revenue—a 28.63% stake.

Speaker #1: As of now, there is no further reportable development in this matter. The net profit for the period is 1 real money 1 million 454,000 against real money 562,000 for the 6 months in 2025.

Speaker #1: The shareholders' equity as of 30 June 2026 was 15.1 million, compared to 14.8 million as of 30 June 2025. The asset per share was 193,000. Now, the floor is open for discussion.

Speaker #1: Please go ahead with your questions. Yeah, there is one question: there is cost operation loss in the March '18 half year since 2009. Can you explain what happened?

Speaker #1: What do you expect in the half year? Second half of 2026. As I have said in my briefing, you know, there is an effect of the geopolitical situation.

[Company Representative] (Al Jazeira Services): What are we expecting the H2 2026? As I have said in my briefing, there is a effect of geopolitical situation due to inflation in food items. We have reported operating losses this year due to extraordinary situation. We expect this to normalize with the issues getting resolved, geopolitical. Then we can see some resolution in our raw material prices of inputs. The inputs for our catering business, especially the food raw material, due to this blockage and other things, and the insurance cost, transport. There is a general inflation as reported by India media also, and for operators like us, we are facing a lot of challenges in procuring those items. But till now, our operation is not affected. Hope I have answered your query. Any other questions?

Speaker #1: Due to inflation, food inflation, and higher costs of food items, we have reported operating losses this year due to these extraordinary situations. We expect this to normalize as these issues get resolved, including geopolitical factors.

Speaker #1: Then we can see some resolution in our fall in prices of inputs. Inputs for our catering business, especially the food, you know, material, etc., due to, you know, this blockage and other things, and the insurance cost plus costs, those are, you know, there is a general inflation reported by, you know, media also, and for operators like us, we are facing a lot of challenges.

Speaker #1: In procuring those items, but our firm or our operation is not. Hope I have answered your question. Any other questions?

Speaker #2: I don't know if you can see the hands. I raised my hand. That's okay.

[Analyst]: I don't know if you can see the hands. I raise my hand, if that's okay.

Speaker #1: Sorry. Mr. Gossip, please go ahead.

[Company Representative] (Al Jazeira Services): Sorry. Actually, Mr. Rashid, please go ahead.

Speaker #2: Yeah, thank you, sir. I've got a couple of questions, if you could help me. With regard to your Anwar exit and capital allocation, do you have any update on the remaining Landmark disposal process? And once completed, what's the board's view on the capital allocation priority?

[Analyst]: Yeah. Thank you, sir. I have got couple of questions if you could help me with. With regard to your Al Anwar exit and capital allocation. Do you have any update on the remaining Al Anwar disposal process? And then once completed, what is the board view on the capital allocation priority for the revenue-

Speaker #2: For the revenue?

Speaker #1: Mr. Rashid, your voice is not clear here. Could you please repeat your question?

[Company Representative] (Al Jazeira Services): Mr. Rashid, your voice is not clear here. Can you please repeat your question?

Speaker #2: Okay. Can you hear me better now?

[Analyst]: Okay. Can you hear me better now?

Speaker #1: Yeah, yes, yes. No, no, very good. Please.

[Company Representative] (Al Jazeira Services): Yes. Now very clear.

Speaker #2: Okay, my question is regarding the Anwar exit and the capital allocation. Do you have any update on the remaining shares of the Anwar disposal process?

[Analyst]: My question is regarding Al Anwar exit and the capital allocation.

[Company Representative] (Al Jazeira Services): Yes.

[Analyst]: Do you have any update on the remaining shares of Al Anwar disposal process? Where are you with it? Once completed, because you've been given the green light to exit, what's the vision for the capital allocation and what's your priority for the revenue from the exit?

Speaker #2: Where are you with it? And once completed, because you've been given you've been given the green light to exit, so what's what's the vision for the capital allocation and what's your priority for the revenue from the exit?

Speaker #1: Yeah, your question is: what is the update on ceramic and realizations—where are we going to allocate? Correct?

[Company Representative] (Al Jazeira Services): Your question is, what is the update on Al Anwar Ceramic and the realizations where we are going to allocate, correct?

Speaker #2: Yes, that's right. Yeah.

[Analyst]: Yes, that's right. Yeah.

Speaker #1: Yeah, so as I have mentioned, we had a GM on the 21st, and shareholders approved the remaining stake of 28.63% in Ceramic. As I have mentioned, till now there is no reportable development on this matter.

[Company Representative] (Al Jazeira Services): As I have mentioned, we had an EGM, 21% shareholdings approved the remaining stake of 28.2% in Al Anwar Ceramic. As I have mentioned, till now, there is no reportable development on this matter. Practically, as you see, the Al Anwar shares, the prices, et cetera, and the market condition due to geopolitical and other reasons. The practicality of it is could agree to be looked into, and this is under board from priority. Till now, there is no reportable matter in this regard. Once we reach to a decision, we will report it to the Muscat Stock Exchange.

Speaker #1: You know, practically, as you see the share prices, etc., and the market condition due to geopolitical and other reasons. So, the practicality has to be looked into.

Speaker #1: And this is under board, you know, this is one priority, and till now there is no reportable matter in this regard. Once we reach a decision, we will report it.

Speaker #2: Okay. So there is not yet any decision from you or the board with regard to whether there would be some special dividends, or if there is a reinvestment opportunity, because you mentioned that you might be looking for a strategic buyer.

[Analyst]: Okay. There is not yet any decision from you or the board with regard to whether there would be some special dividends, or is there a reinvestment opportunity which you are Because you mentioned that you might be looking for a strategic buyer, so you have no update this far.

Speaker #2: So, you have not updated this part.

Speaker #1: Yes, Mr. Rashid. As I have mentioned, the majority of the stake is still not sold. We have sold only 8.3%, and we have disclosed this to the market.

[Company Representative] (Al Jazeira Services): Mr. Rashid, as I have mentioned, the majority of the stake is still not sold. We have sold only 8.3%, and we have disclosed it to market. Now, coming for majority, as of date, there is no material recent development, and the capital allocation, et cetera, once that is done, then board will decide and we'll come back to shareholders.

Speaker #1: Now coming for the majority, you know, as of date there is no material, you know, this one development and the capital allocation etc. Once that is done, then board is deciding.

Speaker #1: We'll come back to share with you.

Speaker #2: Okay, got that, fine. My second question is about your operating cash, if that's okay. I can see that your operating cash has actually deteriorated to negative, despite the fact that you earned $1.4 million as net profit.

[Analyst]: Okay, got that. Fine. My second question is your operating cash, if that's okay. I could see that your operating cash has deteriorated to negative.

[Analyst]: Okay, got that. Fine. My second question is your operating cash, if that's okay. I could see that your operating cash has deteriorated to negative. Despite that, you guys have earned OMR 1.4 million as a net profit. Could you please explain what's happening there?

[Analyst]: Despite that, you guys have earned OMR 1.4 million as a net profit. Could you please explain what's happening there?

Speaker #2: Could you please—could you please explain what's happening there?

Speaker #1: Actually, if you are referring to our—I'm sure you're referring to my cash flow. So, my cash flow, if you see, operating profit is mostly coming from our catering business, not the investment. That is coming down the line.

[Company Representative] (Al Jazeira Services): Actually, I am sure you are referring to my cash flow.

[Analyst]: Yes.

[Company Representative] (Al Jazeira Services): My cash flow, if you see operating profit is mostly coming from our catering business. The investment is coming down the line, investing activities, and that significantly is my cash flow statement. Okay. So operating, if you see, as we have earlier also one question was raised that why we have reported operating losses. So this time, we have reported operating losses, and the impact is around OMR 400,000. Just like if you compare from six months in 2025 to six months of 2024. The cash impact is around OMR 400,000, and you see there is a business increase of OMR 21,000. There is small trade receivable increase due to 21% increase in sales. So that is impacting our operating cash flow. That is the reason we are showing it to you. Other things, OMR 1.4 million, what you are referring is, that is mostly from investment income. I have said-

Speaker #1: Investing activities. Another segment is my cash flow statement. Okay, so operating—if you see, as you had asked earlier also, one question was why we have reported operating losses.

Speaker #1: So this time we have reported operating losses, and the impact is around $400,000. You know, just like if you compare 6 months in 2025 with 6 months of 2024.

Speaker #1: The cash impact is around $400,000, and you see there is a business increase of $21,000, and there is a small, you know, trade receivable increase due to a 21% increase in business.

Speaker #1: So that is impacting our operating cash flow. That is the reason we are showing it. Other things—the 1.4 million you are referring to—is mostly from investment income.

Speaker #1: I have said 400,000 of investment and 1 million of investment income, you know, from sale of ceramic, 8.63%. So, that is coming below the line.

[Analyst]: Yeah

[Company Representative] (Al Jazeira Services): OMR 415,000 of investment and OMR 1 million of investment income from sale of Al Anwar Ceramic 8.63%. That is coming below the line.

Speaker #2: Yeah. So so so do you expect I know there are some positive signs, but do you expect the working capital to build to something like to reverse it during the second half?

[Analyst]: Yeah. I know there are some positive signs, but do you expect the working capital to reverse it during the H2? What are your expectations?

Speaker #2: What are your expectations?

Speaker #1: Our expectation actually there are there are a lot of things where you know always we think positive and we try to work hard to see that yeah we are we are we are trying to you know minimize the working capital cycle.

[Company Representative] (Al Jazeira Services): Our expectation actually, there are a lot of things, always we think positive and we try to work hard to see that, yeah, we are trying to minimize the working capital cycle. I know you are referring to this situation, and that is, we are all trying, but lot of things are situational or the geopolitical and other things which we all know.

Speaker #1: I know you are referring to this situation, and that is, we are all trying. But a lot of things are, you know, the situation or the, you know, the geopolitical and other things, which we all know.

[Analyst]: Yeah. Clear. Thank you.

Speaker #2: Clear. Thank you.

Speaker #1: there is one other question. Can you improve your inventory to avoid war effects going for a long time? Actually, we we are we are we are having a relationship good relationship with our suppliers and those are long-term suppliers and we are we are we are till now we are comfortable with biolocations.

[Company Representative] (Al Jazeira Services): No. There is one other question. Can you improve your inventory to avoid raw material sitting for a long time? Actually, we are having a good relationship with our suppliers, and those are long-term suppliers. Till now we are comfortable with the locations they have made for us. Having all this sort of geopolitical issues, till now, our operation is not affected. Just like, if we feel that, yeah, this is required because doing this, the additional working capital will be required to have the extra inventory and the storage and then logistics and all those things are required. At this point of time, we feel that is not required. We are trying to do the way we were doing business because till now it is not affecting our operations. There is a question, I think operation profit of 10,000 dirhams. Yes.

Speaker #1: They are made for us and having all these sort of a geopolitical issues till now our operation is not effective and just like if we feel that yeah this is required because they they doing this will you know the additional working capital will be required to have the you know extra inventory and you know the you know the storage and then logistics and all those things are required which at this point of time we feel that is not required.

Speaker #1: So we are trying to to do the way we were doing business because till now it is not affecting our operations. There is a question I think operation profit of 10,000 where yeah what you are saying is see the operating profit for if you see from first quarter the second quarter is better and the reason is you know there are certain businesses you know the new contracts which are getting stabilized so our realizations and our you know the margins you know initially when we go it takes time to stabilize so that is slowly getting stabilized and you can see the see e the improvement in our working capital in our operating profit versus first half of 2026.

[Company Representative] (Al Jazeira Services): What you are saying is, see, the operating profit for Q2 from first quarter to second quarter is better. The reason is there are certain businesses, the new contracts which are getting stabilized. Our realizations and our margins in big projects, initially, when we go, it takes time to stabilize. That is slowly getting stabilized. You can see the improvement in our bottom cap in our operating profit versus H1. Another question is for addition, this is a normal question. Normal business of our subsidiary to the clients, coming clients, just like our contracts actually, just like for two years, three years, new contracts coming and other contracts, just like once a year, these contracts are going. Those things are normal processes. As I have said that our revenue has increased by 21% to OMR 6.7 million.

Speaker #1: Another question is for addition you know this is a lot of a a question not normal business of our subsidiary to you know the clients coming clients you know just like our contacts are fixed and you know just like for two years three years new new contacts coming and other contacts you know just like once we are coming then these contacts are going so those things are normal processes and as I have said that our revenue has increased by 21 million percent to 6.7 million so that is an indication that our business that is the reason we are there is another question from Mr. Rashid regarding what matters more to you timing or price you know the realization is more important and but I want to say that this is all you know prerogative of board each shareholder's board to decide about and if for management we we we look at price from our side but it is the prerogative see question Mr. Rashid about what will be for EGM you know once we are working explanatory statement it is very well clarified that you know we are going to concentrate more on capital business you can refer to our EGM invite and you know the explanatory explanatory note in that saying another question is whether we are selling to cover certainly not each investment has a you know maturity and board has decided and shareholders approved to sell to that is the case any further question I mean if I may ask once again I'm sorry I I I do ask a lot but you are welcome thank you I mean I just want to go once again with regard to your vision of second half I mean if we if we put the revenues or the earnings through the exit on one side you're operating profit I mean I mean I could hear that you are not very positive about the grow in your operating profit there seems to be kind of a deep impact on your operation I mean should we expect should we expect the operating profit to go down sorry for a direct question we expect the profit to go up okay we expect it the second half the war will be finished and inshallah it will go up inshallah we no need to worry because same people same contracts what we have but only the cost is little be increased because of the war nothing else but same we are same operation same business so nothing to worry about just we wanted just to make sure that you you guys sustain your dividends and we are quite incentivized with your decision to exit and then we we really count a lot on the earnings that could come from it.

[Company Representative] (Al Jazeira Services): That is an indication that our business is good. It is not really possible with the expense, but that is the reason we have expense. There is another question from Mr. Rashid, regarding Al Anwar, it is more to you. Timing or price? The realization is more important. But I want to say that this is all the prerogative of board. Each shareholder authorized board to decide about sale of Al Anwar shares. For management, we look at the price from our side, but it is the prerogative. See the question, Mr. Rashid, about what we did to listen in other leads. For AGM, once the chair will explain his statement, it is very well clarified that we are going to concentrate in our own capital business. You can refer to our AGM invite and that has been explained clearly what that is.

[Company Representative] (Al Jazeira Services): The sale of Al Anwar shares more expensive? Another question is whether we are selling Al Anwar share to cover shortfall. No. Secondly, each investment has a maturity and board has decided and shareholders approved to sell, to get rid of Al Anwar share. That is the case. Any further question?

[Analyst]: If I may ask once again, I am sorry, I do ask a lot.

[Company Representative] (Al Jazeira Services): You are welcome.

[Analyst]: It is the timeline.

[Company Representative] (Al Jazeira Services): Questions welcome.

[Analyst]: Thank you. I just want to go once again with regards to your vision of H2. If we put the Al Anwar revenues or the earnings through the exit on one side, your operating profit, I could hear that you are not very positive about the growth in your operating profit. There seems to be kind of a deep impact on your operation. Should we expect the operating profit to go down? Sorry for a direct question.

[Company Representative] (Al Jazeira Services): We expect the profit to go up.

[Analyst]: Okay.

[Company Representative] (Al Jazeira Services): We expect it in H2, the work will be commissioned. Inshallah, it will go up.

[Analyst]: Inshallah.

[Company Representative] (Al Jazeira Services): Inshallah. We no need to worry because same people, same contracts what we have, but only the cost is little bit increased because of the work. Nothing else. We are same operation, same business. Nothing to worry.

[Analyst]: We wanted just to make sure that you guys sustain your dividends, and we are quite incentivized with your decision to exit Al Anwar. We really count a lot on the earnings that could come from it. I know it's not fully completed at the moment. We look forward. I know the market maybe doesn't allow you the best price at the moment, but we saw that you guys are already negotiating with a strategic buyer. We count a lot on a good dividend for the upcoming year.

Speaker #1: I know it's not fully completed at the moment, but we look forward. I mean, I know the market maybe doesn't allow you the best price at the moment, but we thought that you guys were already negotiating with a strategic buyer.

Speaker #1: So we we count a lot on a good dividends for the upcoming year. Just for dividend etc as I have mentioned before this is for both to be and once decision is taken we will inform we try to to to increase the price and we already sent a letter to our customer some of them they say we will they will do and some of them they say no as the contract you have to start the contract not saying to increase but it's saying within one month notice we can pull out or if we lose I think we not reach to that stage yet still we are in good position so some of them they agree to increase the price and some of them they say no still early to to talk about it just to what Mr. said we have a fixed contracts and you know those contracts are for long term and most of them have to some more than two years we are trying from our side to pass on some of the some of you know the customers they have accepted some of them they are you know reluctant now you know the competitive pressures and the situation in the market at this point of time we are trying to manage and that the the inflation to try to see that the cost is minimized.

[Company Representative] (Al Jazeira Services): Yeah. Inshallah. Just for dividend, et cetera, as I have mentioned before, this is for the board to decide. Once their decision is taken, we will inform you such good way. We try to increase the price, and we already sent a letter to our customer. Some of them, they say we will deal with one. Some of them they say, no, hasb, the contract, you have to start it. The contract is not saying to increase, but it's saying within one month's notice, we can pull out or if we lose. I think we've not reached to that stage yet. Still we are in good position. Some of them they agree to increase the price, and some of them they say, "No.

[Company Representative] (Al Jazeira Services): Still early to talk about it." Just to add to what Mr. Naqvi said, we have a lot of these contracts, and those contracts are for long term, and most of them are 2 years and more than 2 years. We are trying from our side to pass on some of the customers, they have accepted. Some of them, they are not reluctant. You know the competitive pressures and the situation in the market. At this point of time, we are trying to manage that with the inflation, to try to see that the cost is minimized. We have to see from other side also that our operations are not affected. We are known for quality, and we are not compromising with the quality in this difficult time.

[Company Representative] (Al Jazeira Services): Just to add to what Mr. Naqvi said, we have a lot of these contracts, and those contracts are for long term, and most of them are 2 years and more than 2 years. We are trying from our side to pass on some of the customers, they have accepted. Some of them, they are not reluctant. You know the competitive pressures and the situation in the market. At this point of time, we are trying to manage that with the inflation, to try to see that the cost is minimized. We have to see from other side also that our operations are not affected. We are known for quality, and we are not compromising with the quality in this difficult time.

Speaker #1: We have to see from the other side also that our operations are not affected. We are known for quality, and we are not, you know, compromising quality in this difficult time.

Speaker #1: And also, the compensator is very tough in the market now. So if we try to pull out or increase the price, maybe they will give it to somebody else who is.

[Company Representative] (Al Jazeira Services): The competitor is very tough in the market now, so if we try to pull out or if we reduce the price, maybe we'll give it to somebody else who's. We don't want to do that. As we mentioned, yes, there is many player in the market. If the contract is a start, but if we ask them to breach the contract, maybe we call other players to do the job. That's why we took it very slow step and we do it slowly. Thank you. Any further question, please? Yeah, there is a question, when we look to get a strategic partner for our material place. I given the result in our region, the decision what is taken, and we are looking at to maximize the realization, and we are looking at lot of options.

Speaker #1: We don't want to do it. As we mentioned, yes, there are many players in the market. And if the contract is stuck, but if we ask them to breach the contract, maybe they will call other players to do the job.

Speaker #1: That's why we took it very sensitive and we do it slowly. Thank you. Any other question please? Yeah, there is a question can we look to get a strategic buyer from I've given you know the insight in our you know the decision what is taken and we are looking at to maximize the relation and we are looking at a lot of options but till now as I have mentioned that we have not to a decision which is you know to be whenever the situation is coming we will go to the market Yeah, there is another question on our investment in Iran.

[Company Representative] (Al Jazeira Services): Thank you. Any further question, please?

[Company Representative] (Al Jazeira Services): Yeah, there is a question, when we look to get a strategic partner for our material place. I given the result in our region, the decision what is taken, and we are looking at to maximize the realization, and we are looking at lot of options.

[Company Representative] (Al Jazeira Services): But till now, as I have mentioned, that we have not reached to a decision which is material to be reported. Whenever that situation is coming, we will report it to the market. There is another question on our investment in Iraq, Asiacell. We are slowly exiting as per this price we see in the market. Just to see that our realization is at the highest. We have reported in our Q2 also, we have realized profit from Asiacell, which is good. Insurance for special. This is your call with the board. I have, again, just one question. Again, coming for special dividends. That is for the board to decide. Once that decision is taken, we will inform to share the rest to our investors also. Any further questions, please? Again, this is your decision with the AGM.

Speaker #1: we are slowly exiting as per the you know this price we see in the market slow just to see that for realization is at the highest as we reported in our second quarter also we have realized profit from which is good shows we show dividends after saving is your call with the this I have again just one question another again coming for special dividends that is for the both to decide once that is taken to share with us also any further question please again this is your decision but the decision now to set if we go to price sorry why do you think it's our decision with regard to the special dividends sorry sorry I mean I have the voice is not 100% clear but I as if I've heard you saying it's your decision.

[Company Representative] (Al Jazeira Services): But the decision now to set if we go for full price.

[Analyst]: Sorry, why do you think it is our decision with regard to the special dividends?

[Company Representative] (Al Jazeira Services): I am sorry.

[Analyst]: The voice is not 100% clear, but as if I have heard you saying it is your decision. Is it our decision with regard to the special dividends?

Speaker #1: Is it our decision with regard to the special dividends? Yeah, with the EGM—I'm saying with the AGM, your decision; with the EGM, with the board.

[Company Representative] (Al Jazeira Services): Yeah. With the EGM, I am saying with the AGM, your decision with the board. We follow the instruction from the board too.

Speaker #1: I mean, we follow the instruction for you. Yeah, good. No, that's clear. We are voting for it anyway, ten times if you like. We just need the voice to reach the board directly, sure.

[Analyst]: Yeah. Good. No, that is clear. We are voting for it anyway, 10 times if you like. We just need the voice to reach the board

Speaker #1: Sure. So, good. You can take the message up, please, because you are directly in interaction with them, and if you want, we can send a message on this one.

[Company Representative] (Al Jazeira Services): Sure

[Analyst]: directly now.

[Company Representative] (Al Jazeira Services): Sure, we will.

[Analyst]: You can take the message up, please, because you are directly in interaction with them. And if you want, we can send a message on this one.

[Company Representative] (Al Jazeira Services): Sure. Yes. Now there is another question. Actually, in addition, shareholders in the AGM, they have authorized the board with the remaining shares. In this regard, the decision now from the board side, as per the guidelines of FSA, we report to the market once they approve. There is another question. What possible way to complete with the other player? Yes. The market it is PDO and OQ. OQ is already in roll tender and we participate, but still in the process. Yes, it is the quality and service and many things. That's why we are continuous with some companies by 18 years now, we are continuous with them. So yes, depends about the service and the quality, but the price involved. And we cannot go so much cheap. We cannot lose the contracts.

Speaker #1: Thank you. Yes. now there's another question for information. shareholders in the gym they have a price board they meet these are remaining shares so in this regard the decision you know from the board side as per the reportable you know as per the guidelines of will report to the market once they there is another which what was the way to player yes you know the market it is VGO and OQ OQ is already roll tender and we participate but still the process yes this is a quality and service and many thing that's why we are continuous with some companies by 18 years now we continuous with them so yes depends about the service quality but the price involved and we cannot go so much cheap for losing we cannot lose the contracts usually capital contracts are you know at least for a year to treat it's renewable every 3 years 2 years so it depends from company to company some of them they make it yearly some of them make it every 3 years there is a people they stay for a long time with us until now but the role attender every 3 year solution the question yeah the question related to website we have a website business the second if it is related to financials you know Al Jazira being parent company holding company with our income offline and operating profit if you see that is coming from business the investment side is to a different segment that is you know after the operating profit so those things from you can see in our financials which are posted on possible and if you know just like we are discussing about the financials which we have posted on 30th June 2024 13 June 2026 21st half this you know from our side what do we see the situation and as we have you know discuss about the constants we are facing due to the geopolitical issues that are still not resolved we are trying our best to see that our you know this one consumption of material etc the purchases and the synergies which we came from our side maximize to see that yeah we are getting the benefits and we are trying our best to see that we are profitability improve that is our our our our effort but if you see per se the situation you know what it was in second half of part of second half third half part till now the third quarter is also in the similar situation and we are trying from our side to see that the expenses are getting you know just like procurements and other things you know where we can minimize and we cannot give any guidance you know just like what is going to happen it will be better first month supposedly I mean towards still 30 days to go there is another question whether 2026 operation loss does that affect the dividend dividend is you know on so many you know just like if you see our dividend policies which we have posted on exchange also so the dividend is as per the policy which we have share with us and liability or distribution of dividend is only 10 profit and liability of cash surplus cash and the decision is through prerogative of board of directors during the form once the decision thank you thank you very much so much for joining any further question then we put some one minute we will wait at least one two minutes and then we will conclude the session I think there is no further question so we conclude the session now and we thank you all for joining and we are interested in thanks a lot see you again thank you very much thank you thank you thank you.

[Company Representative] (Al Jazeira Services): Usually, catering contracts are minimum at least for a year to three to five years contracts. It is renewable every three years, two years. So it depends from company to company. Some of them, they make it yearly, some of them make it every three years. There is people that stay for a long time with us until now. But they roll a tender every three years. The first thing, yeah. The first thing related to that side, catering, it is related to website. We have a website for the catering business. The second, it is related to financials. Al Jazeira Services being a parent company and holding company, our income or profit and operating profit, if you see, that is coming from the catering business. The investment side is to a different segment. That is after the operating profit.

[Company Representative] (Al Jazeira Services): So in both cases, from the website, you can clearly see our financials which are posted as possible. As you know, just like we are discussing about the dimensions which we have posted at 30 June 2024, 30 June 2026, and it was done. This from our side, we are witnessing the situation, and as we have discussed about the constraints we are facing due to the geopolitical issues that are still not resolved. We are trying our best to see that our consumption of material, et cetera, the purchases and the synergies which we can from our side maximize to see that we are getting the benefits. We are trying our best to see that we have profitability input. That is our efforts. But if you see per se, the situation, what it was in part of H2.

[Company Representative] (Al Jazeira Services): Part up till now, that upper part up, is also in a similar situation. We are trying from our side to see that the expenses are getting just like procurements and other things, where we can minimize and do some time. We cannot give any guidance, just like what is going to happen in that part of the year. It will be better.

[Analyst]: But not supposed to. I mean.

[Company Representative] (Al Jazeira Services): In other words, it is still 30 days to go. There is another question, whether the 2026 end of year operation loss does that affect the dividend. Dividend is on so many, just like if you see our dividend policy, which we have posted on the stock exchange also. The dividend is as per the policy which we have to shareholders. The availability or distribution of dividend is on retained profit and availability of cash. Surplus cash. That decision is through prerogative of board of directors during the forum on 30 June. Thank you.

[Analyst]: Thank you.

[Company Representative] (Al Jazeira Services): Thank you very much. Thank you so much for joining. Any further question? Let me give you one minute. We will wait at least one or two minutes, then we will conclude the session. I think there is no further question, so we conclude the session now, and we thank you all for joining and for the question and your responses. Thanks a lot. See you again.

[Analyst]: Inshallah. Thank you very much.

[Company Representative] (Al Jazeira Services): Thank you.

[Analyst]: Thank you very much. Thank you.

[Analyst]: Thank you very much.

[Company Representative] (Al Jazeira Services): Thank you.

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Q2 2026 Al Jazeira Services Co SAOG Earnings Call

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